# Question No 08 Chapter No 12 – D.K Goal 11 Class

Question No 08 Chapter No 12

08.Bhushan & Company purchased a Machinery on 1st April, 2015, for 54,000 and spent 6,000 on its installation. On 1st December, 2016, it purchased another machine for 30,000.
On 30th June 2017, the first machine purchased on 1st April, 2015, is sold for 36,000 and on the same date it purchased a new machinery for 80,000.
On December 1, 2018, the second machine (purchased on December 1, 2016) was also sold off for 26,000.
Depreciation was provided on machinery @ 10% p.a. on Original Cost Method annually on 31st March. Give the machinery account for
four years.

## The solution of Question No 08 Chapter No 12: –

 Dr. Machinery A/c Cr. Date Particulars J.F. Amount Date Particulars J.F. Amount 1st Apr.2015 To Bank A/c 60,000 31st Mar2016 By Deprecation A/c(12,500 + 2,500) 6,000 31st Mar2016 By Balance C/d 54,000 60,000 60,000 1st Apr.2016 To Balance b/f 54,000 31st Mar2017 By Deprecation A/c(6,000 + 1,000) 7,000 1st Dec.2016 To Bank A/c 30,000 31st Mar 2017 By Balance C/d 3,17,500 84,000 84,000 1st Apr 2017 To Balance b/f 77,000 30th Jun 2017 By Deprecation A/c 1,500 30th Jun 2017 To Bank A/c 80,000 30th Jun 2017 By Bank A/c 36,000 30th Jun 2017 By Profit & Loss A/c 10,500 1st Mar 2018 By Deprecation A/c(3,000 + 6,000) 9,000 31st Mar2018 By Balance C/d 1,00,000 1,57,000 1,57,000 1st Apr 2018 To Balance b/f 1,00,000 1st Dec 2017 By Deprecation A/c 1st Dec 2017 To Profit & Loss A/c 2,000 1st Dec 2017 By Bank A/c 1st Mar 2019 By Deprecation A/c 31st Mar2019 By Balance C/d 66,000 1,02,000 1,02,000

Working Note:
Calculation of Depreciation

 Statement Showing profit or loss on the sale of Machinery Particulars Amount Machinery Purchase on of Equipment as on 1st Apr. 2015 60,000 Less: – Amount of Depreciation charged on the year 2015-16 60,000 *10%* 12/12 6,000 Amount of Depreciation charged on the year 2016-17 60,000 *10%* 12/12 6,000 Amount of Depreciation charged on the year 2017-18 60,000 *10%* 3/12 1,500 Book value of an asset as of 31st Dec 2018 46,500 Sale Price of Machinery 36,000 Loss on the sale of the asset 10,500
 Statement Showing profit or loss on the sale of Machinery Particulars Amount Machinery Purchase on of Equipment as on 1st Dec. 2016 60,000 Less: – Amount of Depreciation charged on the year 2016-17 30,000 *10%* 4/12 1,000 Amount of Depreciation charged on the year 2017-18 30,000 *10%* 12/12 3,000 Amount of Depreciation charged on the year 2018-19 30,000 *10%* 9/12 2,000 Book value of an asset as of 31st Dec 2018 24,000 Sale Price of Machinery 26,000 Loss on the sale of the asset 2,000

Depreciation | Meaning | Methods | Examples

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